Property portfolio 2020

Castellum has a presence in three of the Nordic region’s capitals and growth markets. We own the most properties of any Nordic property company, and our property portfolio is concentrated in select growth regions in Sweden, Copenhagen and Helsinki.

Castellum’s geographical markets can be characterised as stable, with good prospects for long-term positive development. The commercial portfolio consists of 48% office, 21% public sector properties, 18% warehouse/logistics, 7% retail and 2% light industry. The properties are located in city centre locations and well-situated business districts, with excellent public transportation and services. The remaining 4% consists of developments and undeveloped land.

Castellum owns approximately 670,000 square metres of unutilised building rights and ongoing larger projects with a remaining investment volume of approximately SEK 3.2 billion.

Castellum’s property portfolio at 31 December 2020 comprised 642 properties (632) with a total rental value of MSEK 6,585 (6,177) and a total lettable area of 4,477,000 square meters (4,255,000). For properties owned at year end, the net operating income after property administration expenses over the year was MSEK 4,412 (4,103).

Investments in 2020

During the year, a total of MSEK 5,158 (6,112) was invested, of which MSEK 2,646 (3,350) was acquisitions and MSEK 2,512 (2,762) new construction, extensions and reconstructions. After sales and cash settlements of MSEK 891 (4,138), including a previously unrecognised earnout of MSEK 120, net investments amounted to MSEK 4,267 (1,974).

During the year, the asset portfolio changed according to the table on the right.

Sustainable property portfolio

Environmental inventories are to be carried out for all properties to identify and address environmental and health risks; currently these are 81% complete. Inventory is planned for the remaining 19%, which will be conducted over the next few years and updated every ten years for all properties.

When a property is acquired, it is analysed both in terms of energy utilisation and environmental risk; all new constructions and major reconstructions are environmentally certified. Castellum owns the greatest number of properties among Swedish listed property companies; all together, 39% of the total area – equivalent to 202 buildings (1,747,000 square meters) – is environmentally certified. Further certification is in progress for a further 331,000 square metres, equivalent to 7%. The purpose of certification is to reduce the property portfolio’s climate impact and risks, reduce costs, create premises that are attractive to tenants and their businesses, and to improve safety and working environments for them.

The environmental risks in Castellum’s property portfolio are considered small, and no fines have been paid for environmental offences.

Changes in the property portfolio

 

 

Fair value, MSEK

 

Number

Property portfolio on 1 January 2020

 

95,168

 

632

+ Acquisitions

 

2,646

 

16

+ New construction, extensions and reconstructions

 

2,512

 

–1

– Sales

 

–740

 

–5

+/– Unrealised changes in value

 

3,712

 

+/– Currency translation

 

–256

 

Property portfolio, 31 December 2020

 

103,042

 

642

Castellum's environmentally certified properties1)

 

 

Completed properties

 

Ongoing projects

 

 

Number

 

sq. m.

 

Number

 

sq. m.

EU Green Building

 

53

 

409

 

0

 

0

Miljöbyggnad

 

59

 

441

 

11

 

109

BREEAM

 

83

 

834

 

25

 

216

LEED

 

6

 

63

 

0

 

0

WELL

 

1

 

0

 

3

 

6

Environmentally certified properties2)

 

202

 

1,747

 

39

 

331

1.

Certifications can refer to property, land or part of property.

2.

Note that some of Castellum’s properties are doubly certified. Hence, the total area is slightly smaller than the sum of the figures above.

Share of environmentally certified properties

Environmental certification system

Miljöbyggnad

Miljöbyggnad is a Swedish system that certifies buildings in energy, indoor environment and building materials. It also includes health and safety aspects. The system awards Gold, Silver or Bronze levels and is used for both residential and commercial premises.

BREEAM

BREEAM, from the UK, is together with LEED the most commonly used environmental classification system in the world. The system evaluates and rates the overall environmental impact of buildings.

NollCO2

To promote a climate-neutral construction sector in Sweden, the Sweden Green Building Council (SGBC) has produced the NollCO2 certification. NollCO2 is a supplementary certification to Miljöbyggnad, BREEAM-SE, LEED and Nordic Swan, and is intended to achieve net zero climate impact from new construction.

WELL

WELL certification is based on scientific studies and the standard was developed by the WELL Building Institute (IWBI), based in New York. WELL certifies the social sustainability of a building, focusing on health and wellness. The WELL standard is founded on ten concepts known to affect health.

LEED

LEED, from the US, is together with BREEAM the most commonly used environmental classification system in the world. The system evaluates and rates the overall environmental impact of buildings.

EU GreenBuilding

EU GreenBuilding focuses on improving the efficiency of energy usage. The requirement is to improve energy efficiency by 25%, or to use 25% less energy compared with new construction requirements in the building regulations [BBR] of the National Board of Housing, Building and Planning.

Sustainability programme in connection with new construction and reconstruction

Mandatory requirements for all construction projects at Castellum

Generally, the following requirements are imposed: Code of Conduct, sustainability policy, environmental management system, waste plan, environmental plan, an environmental project manager and energy-efficient product choices such as sustainable PEFC- or FSC-certified wood raw material, LED lighting and A-certified goods, in addition to the selection of sustainable building materials from both an environmental and health perspective as stipulated by the industry association Byggvarubedömningen.


Comprehensive sustainability programme for new construction and reconstruction

Applied in addition to the mandatory requirements in all major projects

  • Miljöbyggnad level Gold1).
  • Choosing renewable energy sources.
  • 15% reduced climate impact per sq. m. in A1–A52).
  • Healthy indoor climate and carefully prepared moisture prevention work
  • Sustainable construction materials
  • Near zero-energy buildings1).
  • Always investigate WELL health certification3).
  • Create a more attractive building through aesthetic decoration.
  • Engage local artists in projects2).
  • Install solar cells3).
  • Investigate the possibilities of outdoor offices according to Castellum’s WorkOut concept3).
  • Create inviting stairwells3).
  • Energy-efficient and environmentally friendly construction sites.
  • Non-fossil fuel powered vehicles at construction sites.
  • Restoration and increased amount of ecosystem services.
  • Climate risk management.
  • Requirements that entrepreneurs create workplaces in the project for people struggling to enter the job market.

1. For new production in Sweden, Miljöbyggnad level Gold applies; in Denmark and Finland, BREEAM Excellent applies. Logistics buildings are certified under Miljöbyggnad Silver level. Other types of projects are certified.

2. Applies to newly constructed offices over MSEK 100.

3. Applies only to construction of office premises.

Property value by category
Property value by region
Property portfolio, 31 December 2020

 

 

31 December 2020

 

January–December 2020

Category

 

Number

 

Area, thousand sq. m.

 

Property value, MSEK

 

In SEK/sq. m.

 

Rental value
MSEK

 

In SEK/sq. m.

 

Economic occupancy rate

 

Income MSEK

 

Property costs, MSEK

 

In SEK/sq. m.

 

Net operating income, MSEK

Offices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholm

 

31

 

291

 

12,922

 

44,413

 

705

 

2,424

 

90.4%

 

635

 

122

 

420

 

513

West

 

66

 

376

 

11,011

 

29,327

 

682

 

1,815

 

92.5%

 

618

 

122

 

325

 

496

Central

 

79

 

557

 

11,166

 

20,040

 

860

 

1,544

 

91.9%

 

778

 

196

 

352

 

582

Öresund

 

43

 

398

 

11,419

 

28,701

 

846

 

2,127

 

92.0%

 

759

 

178

 

447

 

581

North

 

2

 

5

 

102

 

20,802

 

8

 

1,632

 

98.4%

 

8

 

2

 

423

 

6

Finland

 

7

 

58

 

2,712

 

46,622

 

181

 

3,120

 

86.2%

 

157

 

44

 

756

 

113

Total Office

 

228

 

1,685

 

49,332

 

29,286

 

3,282

 

1,949

 

91.4%

 

2,955

 

664

 

394

 

2,291

Public sector properties

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholm

 

12

 

89

 

5,839

 

65,389

 

283

 

3,168

 

97.2%

 

268

 

42

 

472

 

226

West

 

12

 

79

 

1,614

 

20,367

 

108

 

1,360

 

90.4%

 

96

 

18

 

232

 

78

Central

 

31

 

317

 

8,707

 

27,488

 

565

 

1,783

 

96.7%

 

543

 

103

 

326

 

440

Öresund

 

9

 

98

 

3,651

 

37,374

 

219

 

2,244

 

98.7%

 

214

 

29

 

295

 

185

North

 

10

 

100

 

2,068

 

20,705

 

149

 

1,492

 

95.3%

 

141

 

26

 

259

 

115

Total Public sector properties

 

74

 

683

 

21,879

 

32,039

 

1,324

 

1,939

 

96.5%

 

1,262

 

218

 

320

 

1,044

Warehouse/logistics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholm

 

38

 

276

 

5,971

 

21,597

 

343

 

1,242

 

91.9%

 

310

 

42

 

151

 

268

West

 

70

 

631

 

8,213

 

13,021

 

518

 

821

 

93.8%

 

467

 

77

 

122

 

390

Central

 

30

 

166

 

1,661

 

10,024

 

135

 

812

 

87.7%

 

117

 

24

 

147

 

93

Öresund

 

36

 

237

 

2,601

 

10,973

 

199

 

842

 

94.9%

 

184

 

39

 

163

 

145

Total Warehouse/Logistics

 

174

 

1,310

 

18,446

 

14,082

 

1,195

 

912

 

92.8%

 

1,078

 

182

 

139

 

896

Retail

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholm

 

28

 

149

 

3,542

 

23,701

 

230

 

1,537

 

94.9%

 

215

 

33

 

216

 

182

West

 

16

 

66

 

1,290

 

19,662

 

84

 

1,278

 

96.9%

 

78

 

17

 

267

 

61

Central

 

21

 

114

 

1,880

 

16,533

 

147

 

1,288

 

97.6%

 

140

 

28

 

242

 

112

Öresund

 

11

 

45

 

840

 

18,455

 

69

 

1,522

 

90.2%

 

61

 

13

 

289

 

48

Total Retail

 

76

 

374

 

7,552

 

20,177

 

530

 

1,414

 

95.4%

 

494

 

91

 

241

 

403

Light industry

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholm

 

10

 

43

 

792

 

18,302

 

54

 

1,250

 

95.5%

 

51

 

9

 

210

 

42

West

 

15

 

62

 

763

 

12,384

 

54

 

873

 

95.8%

 

51

 

8

 

123

 

43

Central

 

10

 

29

 

404

 

13,844

 

31

 

1,070

 

96.8%

 

30

 

5

 

189

 

25

Öresund

 

4

 

42

 

393

 

9,337

 

33

 

792

 

94.0%

 

31

 

4

 

100

 

27

Total Light Industry

 

39

 

176

 

2,352

 

13,353

 

172

 

979

 

95.5%

 

163

 

26

 

150

 

137

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total investment properties

 

591

 

4,228

 

99,561

 

23,549

 

6,503

 

1,538

 

93.1%

 

5,952

 

1,181

 

279

 

4,771

Lettings and property administration expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

379

 

90

 

–379

Total after lettings and property administration expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,560

 

369

 

4,392

Developments

 

34

 

219

 

3,011

 

 

82

 

 

 

46

 

26

 

 

20

Undeveloped land

 

17

 

 

470

 

 

 

 

 

 

 

 

Total

 

642

 

4,447

 

103,042

 

 

6,585

 

 

 

5,998

 

1,586

 

 

4,412

The table above relates to the properties owned by Castellum at the end of 2020 and reflects the income and costs of the properties as if they had been owned during the entire period. The discrepancy between the net operating income of MSEK 4,412 reported above and the net operating income of MSEK 4,335 in the income statement is explained both by the deduction of the net operating income of MSEK 42 in properties sold during the year, by the MSEK 111 upward adjustment of the net operating income on properties acquired/completed during the year, which are recalculated as if they had been owned or been completed during the entire year, and the exclusion of MSEK –8 from the co-working company in the table above.