Real estate development company Titania reports a rise in operating net income for the third quarter compared to the same period last year.
Rental income amounted to SEK 21.2 million (18.2), an increase of 16.5 percent year-on-year.
Operating net income reached SEK 15.6 million (13.0), up 20.0 percent from the previous year.
Realized changes in property values totaled SEK 0 million (-17.5). Unrealized changes in property values amounted to SEK 213.7 million (279.6). Total changes in derivatives were -SEK 0.7 million (0).
Profit before tax was SEK 183.4 million (241.3).
Net profit after tax stood at SEK 110.0 million (208.7), corresponding to SEK 1.52 per share (2.92).
Net asset value per share was SEK 24.00 (14.47).
"Titania has over 700 rental apartments and receives a monthly update on tenants' payment capacity. We see what the demand is during tenant turnover, and we see how reliable the tenants are as payers. Today, there is stable demand and payment capacity at SEK 10,000-11,000 per month in rent for well-designed one-bedroom apartments of 30 square meters in average suburb locations close to tram lines in Stockholm," commented CEO and founder Einar Jansson, continuing:
"Converted to condominium prices, the same monthly cost today--including loan interest, amortization, and the condominium association fee--could roughly buy a comparable condominium for SEK 80,000 per square meter, compared to the current price of SEK 68,000. I believe this relationship will eventually lead to a price correction for condominiums."
Titania Holding AB (publ) is an Sweden-based holding company primarily engaged in real estate rental, development and operations business sector. The Company's business concept is to work with project development, production and management of properties. Titania Holding AB (publ) grows primarily through its own development of new residential areas and control of the entire value chain from the development of new zoning plans to construction and finally to the long-term management of the properties. The Company is involved in the entire value chain, from the early urban and project development phases to the acquisition of land, production and leasing and finally also long-term management of the properties Titania Holding AB (publ) conducts business activities by providing management and management services to its subsidiaries as well as other related activities.
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