Aros Bostad in short

Aros Bostad is a residential developer focusing on developing modern, functional and sustainable residential housing in attractive geographical areas, with timeless choices of materials and designs.

The Company acquires and develops land into building rights and subsequently into residential housing. With a long-term perspective and responsibility for the entire value chain, Aros Bostad creates a safe deal for home buyers as well as stable returns for the investors.

The primary geographical market is the greater Stockholm area and Uppsala. The Company’s project portfolio has historically been built up through fund structures in collaboration with institutional investors, as well as through own acquisitions.

Main investors in Aros Bostad’s funds are primarily institutional capital from AP1, Varma, SEB Trygg-Liv, SEB Pensionsstiftelse, Östersjöstiftelsen as well as several prominent and financially strong entrepreneurs and investors.

The Company’s class A and B preference shares are listed on Nasdaq First North Growth Market. In Q1 2020, Aros Bostad announced the intention to carry out an offering of ordinary shares to the market.

Vision
By developing long-term sustainable housing to satisfied customers, we create the highest possible returns for our investors.

Mission
We want to understand how people want to live, today and tomorrow. Based on this, we develop the cityscape with long-term sustainable housing.

Value proposition
All our customers should feel proud of their new home and feel confident in their purchase, from the first viewing through the process of moving in. Each project is carefully taken care of and driven by competence and presence, to ensure sustainable living.

Financial targets

Aros Bostad has clear financial and operational targets for the business. The Company focuses on risk management as well as continuous monitoring of cash flows of the project portfolio, paving the way for sustainable value creation in combination with balanced growth and financial profitability.

Project targets
Each project should, through project development, project-specific marketing and sales efforts as well as through cost-efficient execution, maximise the market value of the project, and ultimately result in solid returns in combination with a balanced project risk.

Units in production
The number of units in production should amount to 800-1,000 each year.

Equity ratio
The long-term equity ratio should exceed 30 per cent.

Project margin
The project margin, defined as project profits divided by project costs, should amount to, at least, 20 per cent over time. The target is based on the historical average of project margins as well as the current business plan for the project portfolio.

Key ratios Q1 2021

Aros Bostad had, as per Q1 2021, a total of 30 projects with a total development area of c. 390,000 sqm, corresponding to c. 4,600 units. Per the same date, the Company had 623 units in ongoing production, of which several are included in projects that are, as of today, already sold out.

Financial key ratios – IFRS
Q1 2021Q1 202020202019
Net revenue[1]68,1624,45013,00724,900
Operating profit, %[2]82.8neg.neg.53.9
Profit before tax56,368-12,420-40,2809,511
Total assets734,296800,0931,009,219810,165
Equity ratio, %[3]79.767.552.568.2

 

Financial key ratios – Segment reporting4
Q1 2021Q1 202020202019
Net revenue19,62215,00745,166207,818
Operating profit, %53.416.098.510.8
Profit before tax10,0271,78741,96219,381
Total assets816,414739,318821,182809,299
Equity ratio, %82.381.980.774.6

 

Operational KPIs
Q1 2021Q1 202020202019
Units sold9435301136
Units booked47625
Unit starts102290289
Units completed161333
Units in production623403521564
Share of units sold or booked in production, %69676570
Projects in project portfolio30222922
Building rights in project portfolio4,6083,1934,5463,264

Thousands unless otherwise stated

[1] Revenue from project management in fund projects and revenue from completion of own projects

[2] EBIT in relation to revenue

[3] Equity in relation to total assets

4 The table shows Aros Bostad’s key ratios in accordance with segment reporting for fiscal years 2020, 2019 and for the period January 1 – March 31, 2021 and 2020. The difference between applying segment reporting and IFRS is that the income from sales of residential units, in accordance with the previous applied accounting method, is accounted for when the project is sold to the tenant-owner association. The income is then reported according to the percentage-of-completion method. As a consequence of changing reporting method, it is the homebuyer of the apartment, and not the tenant-owner association, that is identified as Aros Bostad’s customer. After the change of accounting standard, the income is reported when the customer moves in. Before the customer moves in, the residential unit is treated as a current asset under the line-item development properties. Aros Bostad intends to continue to report in accordance with both accounting methods and finds that segment reporting gives a more complete view of the Company’s business, which is also in line with the Company’s internal reporting.

The history

The Company was founded in 2006 and its primary market is the greater Stockholm area, including Stockholm county and Uppsala. The Company’s focus has transferred from historically having converted commercial buildings to housing, to focusing on developing and producing new residential units and housing. The Company’s project portfolio has historically been built up through fund structures in collaboration with institutional investors, as well as through own acquisitions.

Since November 2018, Aros Bostad has had preference shares listed on Nasdaq First North Growth Market. In September 2019, First Swedish National Pension Fund (AP1) acquired a large stake in the Company through a directed issue of ordinary shares for an amount of c. SEK 150 million. The directed issue of ordinary shares to AP1 was part of Aros Bostad’s continued ambition to create favourable conditions for further expansion of the Company’s project portfolio through value-adding building rights acquisitions, in addition to strengthening the shareholder base with a well-renowned institutional investor.

As a result of Aros Bostad’s growing landbank, the Company intends to develop a larger share of the projects on the balance sheet to enable further financial growth going forward, hence the intention (ITF Q2 2021) to carry out an Offering to the market. The Offering is expected to be comprised of ordinary shares to an amount of c. SEK 300 million as well as existing shares offered by the Selling Shareholders.

All Aros Bostad’s press releases will be published in English, alongside Swedish, as of 25 May 2021. Please feel welcome to contact any of our key contacts below in order to get more detailed company- or projectrelated information in English.

Press Releases

Contacts

Certified adviser

 

Key contacts

  • Magnus Andersson, CEO, e-mail: magnus.andersson@arosbostad.se, telephone: +46 8 400 230 50
  • Ken Wendelin, CFO/Deputy CEO, e-mail: ken.wendelin@arosbostad.se, telephone: +46 73 518 02 70
  • Anna Åkerlund, Head of Communications, e-mail: anna.akerlund@arosbostad.se, telephone: +46 70 778 28 97