News

8 november, 2024

Interim report 1 January-30 September 2024

Stable positive earnings and Arise makes its first sale in energy storage

CEO Comment:

In September, Arise made its first transaction in energy storage (BESS) with the sale of the 40 MW Pajkölen project. The transaction means that we are now delivering on our diversification strategy with new technologies and demonstrating our ability to create value by taking advantage of the company’s platform, the synergies between different projects and market knowledge. The project quickly reached the ready-to-build phase and, in addition to the direct sales proceeds, the transaction entails a material, positive contribution for the Kölvallen project, with lower capex as a result of Pajkölen’s investment contribution to the grid connection. All other things being equal, this entails a higher earnout for the Kölvallen project. The Pajkölen transaction clearly demonstrates the realisable value of our project portfolio in which we now have about 650 MW of battery energy storage system (BESS) in various geographies.

Third quarter (1 July–30 September 2024)

  • Net sales for the quarter amounted to MSEK 105 (96).
  • Operating profit before depreciation and amortisation (EBITDA) was MSEK 55 (59).
  • Operating profit (EBIT) was MSEK 33 (43).
  • Profit after tax totalled MSEK 63 (35) and earnings per share amounted to SEK 1.55 (0.84).
  • Operating cash flow was MSEK 43 (-47) and cash flow after investments amounted to MSEK -8 (-231).
  • Production generated 66 GWh (60) with an average income of SEK 469 per MWh (718).
  • The project portfolio increased by more than 200 MW during the quarter.

 

Selected key figures Q3 2024 Q3 2023 Q3 2022 Q3 2021 Q3 2020
Net sales, MSEK 105 96 917 180 24
EBITDA, MSEK 55 59 713 76 0
Earnings per share, SEK 1.55 0.84 15.86 1.41 -0.92
Adjusted equity per share, SEK 64 58 50 33 25
Equity/assets ratio, % 56 58 45 51 43
Project portfolio, MW ~8,100 ~6,800 ~2,650 ~2,650 ~1,300

 

First nine months (1 January–30 September 2024)

  • Net sales for the period amounted to MSEK 317 (313).
  • Operating profit before depreciation and amortisation (EBITDA) totalled MSEK 178 (204).
  • Operating profit (EBIT) totalled MSEK 120 (157).
  • Profit after tax totalled MSEK 139 (123) and earnings per share was SEK 3.42 (2.86).
  • Operating cash flow was MSEK 185 (43) and cash flow after investments amounted to MSEK 11 (-439).
  • Production generated 225 GWh (201) with an average income of SEK 605 per MWh (874).
  • The project portfolio increased by over 1,200 MW during the period.

Significant events during the first nine months

  • In May, Arise announced that the Board had resolved to utilise the authorisation granted by the 2024 Annual General Meeting to buy back the company’s own shares up to MSEK 50 ahead of the 2025 Annual General Meeting. Under this share buyback programme and the previous buyback programme, 2,455,820 own shares were repurchased for MSEK 110 during the first nine months of the year.
  • In May, Eva Vitell announced that she was leaving the Board of Arise at her own request, since she has accepted a position with Svenska Kraftnät.
  • In May, the Lebo wind farm was completed. The wind farm is fully owned by Arise, has a capacity of 33 MW and is located in price area 3. Following the completion, Lebo is part of the Production segment.
  • Arise announced in June that the earnout payment for the Ranasjö- and Salsjöhöjden project had been established at MEUR 6.6, which was received in the same month. Of the earnout amount, MEUR 4.2 had already been recognised whereby the earnings effect for the quarter amounted to MEUR 2.4.
  • In June, Arise’s subsidiary Pohjan Voima entered into a cooperation agreement with Finsilva, one of Finland’s largest landowners. The cooperation opens up opportunities for the development of new wind and solar projects, which may also include battery storage. Five project areas have been identified with estimated potential of approximately 500 MW.
  • In September, Arise entered into an agreement with Flower Infrastructure Technologies AB to sell the 40 MW battery project Pajkölen. The purchase price will amount to a maximum of approximately MSEK 30. Approximately MSEK 15 will be received at closing and the remaining part at completion of the grid connection. Closing took place after the end of the reporting period. Arise will not be responsible for construction management or asset management of Pajkölen after commissioning. In addition, the transaction also includes a potential earnout payment of approximately MSEK 15, which will be realised at certain prices for ancillary services during the first three years after commissioning.

Halmstad, 7 November 2024

Arise AB (publ)

For further information, please contact:

Per-Erik Eriksson, CEO Arise AB, +46 702 409 902

Markus Larsson, CFO Arise AB, + 46 735 321 776

This information is such information as Arise AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08:00 CET on 7 November 2024.

About Arise
Arise is a leading independent company that realises new green energy. The company develops, builds, sells and manages renewable electricity production. The company is listed on Nasdaq Stockholm.

Arise AB (publ), Linjegatan 7, 302 50 Halmstad, tel. +46 10 450 71 00, org.nr. 556274-6726, E-mail: info@arise.se, www.arise.se


7 november, 2024

Increased efficiency in a recovering market

The European property market is showing signs of cautious recovery and a slight increase of transaction market activity due to improved credit terms and lower interest rates. Macroeconomic conditions are also improving with inflation now under control and lower interest rates. During the quarter, Investment Management generated balanced in and out-flows, along with new asset management mandates, which is encouraging in a relatively subdued transaction market. Our stable liquidity and capital position, coupled with strategic organisational adaptations, enhance our preparedness as the market rebounds.

The outlook on the transaction market improved slightly in the third quarter, although completed transactions did not increase notably on the European markets. The underlying sentiment is positive and there are indications that the gap between buyers and sellers’ expectations is closing, supporting increased transaction volumes going forward.

The main reason behind a brighter outlook is improved financing conditions and lower capital costs. Although transactions still take a long time to complete, market sentiment suggests that we can expect more and larger transactions looking ahead, as the market slowly but surely prices in lower capital costs.

At macro level, the outlook is also brightening with inflation under control in Europe and the US, and with key central banks in the midst of interest rate cuts. However, the outlook is not as bright in all markets, where some economies, such as Germany, continue to face challenges. In addition, the continued political uncertainty and ongoing conflicts that, besides human suffering, could lead to new inflationary pressure, increased oil prices and disruptions in logistics.

The European property market is showing signs of recovery, with some segments experiencing stabilization or even decreases in yields. This indicates that the negative trend observed over the past two years and the decline in property values may be near a turning point. Given the positive impact of increased transaction market activity across all Catella’s business areas, we are encouraged by indications from current dialogues we have across our European markets that a recovery is underway, with sellers’ and buyers’ price expectations increasingly aligning.

I recently had the opportunity to attend the property fair Expo Real in Munich with other colleagues. In comparison to just six months ago, the sentiment within the sector is markedly more positive, with a notable increase in discussing transactions based on well-founded and genuine interest.

Operating profit for the quarter amounted to SEK 19 M (32), the decrease attributable to non-recurring costs of SEK 13 M. Adjusted for this, profit was in line with the previous year, despite decreased revenue excluding commissions, assignment and production costs of almost SEK 10 M. The outcome is the result of our initiatives aimed at increasing efficiency and digitalising operations, thus reducing costs.

Balanced capital flows
The Investment Management business area takes pride in having successfully balanced in- and outflows in the core business during challenging times. The majority of capital inflows were generated in Asset Management through the growth of new mandates, where investors appoint us to manage and develop property portfolios and to reposition them in the current and future market. This demonstrates that our business model continues to generate growth opportunities even in a weaker and more hesitant market. The work associated with new investment products continued successfully in the quarter, and we are now moving out of the product development phase and towards actively seeking investments alongside new and high-profile investment partners.

During the quarter, the initiative to merge our two fund management companies – Catella Residential Investment Management (CRIM) and Catella Real Estate AG (CREAG) continued. The ultimate goal is to create a stronger, more efficient and larger fund platform in Investment Management. The merger will result in a more efficient capital raising function, improved coordination of investor relations, and stronger management and analysis capabilities.

Investment Management’s assets under management totalled SEK 151 Bn in the quarter, which represents a decrease of SEK 1 Bn compared to the end of the second quarter, primarily driven by exchange rate differences.

Planned divestments
In Principal Investments, the focus continues to be on developing and completing existing projects for divestment. In the fourth quarter, we expect to divest the French development project Polaxis. The divestments will further strengthen our liquidity and open up for new investment opportunities that meet our return requirements.

At the end of September, Kaktus Towers was awarded the prize “Europe’s Best Tall Building” by an international jury of architects at CTBUH’s (Council on Tall Buildings and Urban Habitat) conference in London. The award recognises both the building’s innovative architecture and its contribution to modern and sustainable residential concepts that satisfy the needs of today and tomorrow. We continue active dialogues with potential investors of a sale of this landmark in central Copenhagen.

Looking ahead, we are evaluating potential investments in both development projects and several European aggregation mandates with capital partners. With valuations stabilizing, we see attractive investment opportunities.

Signs of transaction market recovery
As previously mentioned above, we are beginning to see a brighter transaction market in Corporate Finance, although this has not yet translated into a notable increase in the number of transactions.

While transaction volumes in Europe were up slightly year-on-year, they remain well below the levels seen two years ago, when the downturn began. We are optimistic that the number of transactions will pick up on several markets in the fourth quarter, as this is the most transaction-heavy quarter in historical terms.

Green investments
In support of future green investments in the real estate industry, we established a Medium Term Note-program (MTN) in the quarter. In September, we issued new senior unsecured green bonds at a total amount of SEK 600 M, which attracted significant interest. The new green bonds are listed on Nasdaq Stockholm’s list for sustainable bonds. The issue is the first under our green bond framework.

In the quarter, we also continued the process associated with the implementation of CSRD (Corporate Sustainability Reporting Directive) – a new EU Directive aimed at increasing transparency and responsibility relating to corporate sustainability reporting.

Outlook
I am humbled by the confidence the Board has placed in me to lead Catella into the future during the recruitment of a permanent CEO. As indicated above, I am optimistic about the near future after more than two challenging years.

We have done and continue to do the right things. During the period of reduced activity, we have worked diligently to improve efficiency and adapt the organization. We have maintained a strong liquidity and a strong capital position and are now well-positioned to take advantage of the upturn. Our upcoming divestments will further strengthen our position. As the market improves, Catella is in a strong position to capture and capitalize on the opportunities arising, and continue to create value for our customers and shareholders in the future.

Catella presents the Interim Report and answers questions today at 10 a.m. CET.
To participate, go to https://financialhearings.com/event/48742

Daniel Gorosch, interim CEO and President
Stockholm, Sweden, 07 November 2024

For further information, please contact:

Michel Fischier
CFO
+46-8-463 33 86
michel.fischier@catella.se


25 oktober, 2024

Interim report CA Fastigheter AB (publ) January-September 2024

• Rental income increased by 4.8% to MSEK 674 (643).
• The operating surplus increased by 5.4% to MSEK 454 (430), giving a surplus ratio of 67.3 (66.9) %.
• Profit from property management decreased by 2.3% and amounted to MSEK 232 (238). The decrease is mainly due to an increased financial expense.
• Profit from project activities amounted to MSEK 2 (22).
• The market value of the properties amounted to MSEK 14,632 (15,407). CA Fastigheter does not market value the properties continuously during the year, increased value from year end 2023 refers to investments and exchange rate fluctuations.
• Profit after tax amounted to MSEK 100 (189). The decrease is mainly due to changes in the value of derivatives.

Significant events during July – September 2024:
– The property Hermodsdal 8 in Malmö, which consists of 100 apartments, has undergone an extensive refurbishment of the building, with the interior renovations completed during the period. The exterior renovations are ongoing and are expected to be completed in the last quarter of 2025.
– In August, the property Grepen 1 in Borås was certified according to the Swedish Green Building Council’s Miljöbyggnad iDrift with a grade of silver. The property comprises of three buildings. CA Fastigheter is constantly working with sustainability and during the period, the work on environmental certifications has intensified, which is not only good for the properties but also increases knowledge about sustainability in the organization.

For further information, please contact:

Malin Claesson Stenström, CEO
+4673-923 97 59, malin.claesson@cafastigheter.se
Caroline Menninge, CFO
+4670-534 25 86, caroline.menninge@cafastigheter.se

Q3 2024 CA Fastigheteter AB (publ)


9 oktober, 2024

Nomination committee before the annual general meeting 2025

The nomination committee before the annual general meeting 2025 in Catella AB has been appointed in accordance with the current instruction for the nomination committee.

The nomination committee before the annual general meeting 2025 comprises Eje Wictorson, appointed by Claesson & Anderzén, Ruben Visser, appointed by Gran Fondo Capital, and Oscar Karlsson, appointed by Alcur Fonder. Eje Wictorson has been appointed as chairman of the nomination committee.

Information about the work of the nomination committee can be found on the company’s website, www.catella.com. Shareholders who wish to submit proposals to the nomination committee may do so in writing via e-mail to valberedning@catella.se or by post to Catella AB, Att: Nomination Committee, P.O. Box 5894, SE-102 40 Stockholm, Sweden.

The annual general meeting in Catella AB will be held on Tuesday, 20 May 2025 in Stockholm.

For more information, please contact:

Eje Wictorson
Chairman of the nomination committee
+46 70 600 19 58
eje.wictorson@claessonanderzen.com


19 september, 2024

Arise enters into agreement to sell 40 MW battery project

Arise AB (publ) (”Arise”) has entered into an agreement with Flower Infrastructure Technologies AB (”Flower”) to sell the battery project Pajkölen with a capacity of 40 MW.

The transaction covers all the shares in Pajkölen BESS AB, which owns the project rights. The purchase price will amount to a maximum of approximately SEK 30 million. Approximately SEK 15 million will be received at closing and the remaining part at completion of the grid connection. Closing is conditional upon certain approvals from authorities and is expected to occur during the fourth quarter of 2024. The grid connection is expected to be completed during the first half of 2025. The project is located within the wind farm Kölvallen in the municipality of Ljusdal and will connect to the same station. Arise divests the project rights in Pajkölen and will not be responsible for construction management or asset management after commissioning.

In addition, the transaction also includes a potential earn-out payment of approximately SEK 15 million, which will be realized at certain prices for ancillary services during the first three years after commissioning.

Arise was advised by DNB Markets and Setterwalls Advokatbyrå AB in the transaction.

Per-Erik Eriksson, CEO, Arise:

”We are very happy to be able to divest our first battery project, thereby proving the inherent values in our project portfolio. We have an increasing number of battery projects in several of our markets which have the advantage that they are quick to realize. One should remember that Pajkölen until recently was an early-stage project where we successfully accelerated it to this transaction. The project is also a good example where we use our local knowledge of individual projects, such as Kölvallen in this case, to generate new and profitable transactions.”

John Diklev, CEO, Flower:

”Pajkölen fits well with Flower’s strategy and confirms our position as the leader within flexibility, with solid experience from all phases, from planning to optimization. The project widens our offering, enabling clean and reliable electricity to more customers. We are happy and proud to continue driving the energy transition and balancing the renewable electricity system.”

Halmstad, 19 September 2024

ARISE AB (publ)

For further information, please contact:

Per-Erik Eriksson, CEO Arise AB, +46 702 409 902

Markus Larsson, CFO Arise AB, + 46 735 321 776

This information is such information as Arise AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 07:45 CEST on 19 September, 2024.