In the financial year 22/23, the Stensdal Group realizes a profit before tax of DKK 73 million and reaches an equity of DKK 799 million.
The solid result was achieved despite more difficult framework conditions, including interest rate increases and consequent increases in the Group's interest expenses and in the yield requirements for investment properties. In isolation, increases in the required rate of return on the Group's investment properties have resulted in negative value adjustments of DKK 85 million, while renovation, new construction and operational improvements have created added value on investment properties of DKK 138 million, resulting in net positive value adjustments of DKK 53 million.
The Group's investment properties represent a total value of DKK 1.6-30 million and the equity ratio remains very high at just over 45. Despite a year with many market challenges, CEO Søren Stensdal is satisfied with the financial year:
"With high interest rates and inflation not yet fully settled, there's no doubt that the real estate industry has been - and continues to be - affected. Despite this, we have delivered solid results that we can be proud of. This is in line with our philosophy that we should create added value ourselves through development and efficient management - not through cyclical gains."
Stensdal Group is also pleased that the occupancy rate for the company's commercial properties in Greater Copenhagen has increased from 81% to 86%, while the occupancy rate for the group's residential properties is 100%.
Exciting times ahead
In 2023, the company focused on completing projects already underway and investing heavily in the existing real estate portfolio. Here, the focus has been on ensuring optimization when remodeling and focusing on interior design when new tenants move in, while investing in the purchase of building rights and maturing the Group's project portfolio.
The Group has generally had a high level of activity, and the coming year will be no exception. A total investment level of DKK 200-250 million is budgeted, partly through the purchase of additional properties and partly through new construction on land already owned by the Group.
In the residential enclave Ammendrup Park in Helsinge, construction has begun on the last 58 rental townhouses out of a total of 200. In Herlev, construction is expected to start on a project with 59 rental homes, and in Høje-Taastrup, a pre-let commercial building of just over 10,000 m2 is expected to start. In other words, the stage is set for an exciting 2024 with a strong focus on development:
"Our disciplined approach to sourcing properties and projects, which has limited new purchases in recent years, is now benefiting us in terms of investment capacity and the ability to manage our construction and renovation projects efficiently. At the same time, the rental market remains relatively good and demand for our finished products is positive. This applies to both our commercial premises and the affordable housing that we focus on." says CEO, Søren Stensdal
View the financial statements for 2022/2023 via the link below, and on our LinkedIn you can hear CEO Søren Stensdal and CFO Martin Sørensen put the year's financial results into words.