During the third quarter of 2020, 70 percent of the shares in Catella Fondförvaltning AB (Mutual Funds) were divested. Income and expenses are included from January to August 2020. Assets under management amounted to SEK 135.8 billion at the end of the period. Adjusted for Catella Fondförvaltning AB, this was an increase of SEK 7.2 billion compared with the previous quarter, mainly driven by the Property Investment Management business area. Total revenues increased by SEK 227 million compared with the third quarter last year and amounted to SEK 744 million during the quarter. Operating profit increased by SEK 185 million to SEK 259 million during the corresponding period. Most of the increase in total income and operating profit is attributable to the divestment of the Grand Central property development project in Germany, divided into income from participations in associated companies and income from the Property Investment Management business area. Profit attributable to the parent company's shareholders amounted to SEK 220 million during the third quarter.
July – September 2020
- Total income SEK 744 M (517)
- Net sales SEK 565 M (507)
- Operating profit/loss SEK 259 M (74)
- Profit/loss before tax SEK 246 M (-33)
- Profit for the period from remaining operations SEK 215 M (-60)
- Profit/loss for the period from disposal group held for sale SEK 5 M (-9)
- Profit/loss for the period SEK 220 M (-69), of which SEK 220 M (-83) attributable to shareholders of the Parent Company
- Earnings per share* SEK 2.49 (-0.96)
January – September 2020
- Total income SEK 1,771 M (1,659)
- Net sales SEK 1,513 M (1,631)
- Operating profit/loss SEK 370 M (300)
- Profit/loss before tax SEK 314 M (170)
- Profit for the period from remaining operations SEK 166 M (76)
- Profit/loss for the period from disposal group held for sale SEK -85 M (52)
- Profit/loss for the period SEK 81 M (128), of which SEK 73 M (66) attributable to shareholders of the Parent Company
- Earnings per share* SEK 0.82 (0.76)
- Equity* SEK 1,564 M (1,487)
- Equity per share* SEK 17.70 (17.23)
- Assets under management SEK 135.8 Bn (174.4***)
- Variable earnings** in Systematic Funds levied at year-end totalled SEK 0 M at the end of the period.
"In my previous CEO’s Statement, I commented on the property focus that we have initiated. This continued in the third quarter. From next year, we will be reporting our principal investments under a dedicated business area. The investments will be described in more detail in order to increase transparency and better monitor progress. The goal is for the investments to generate a minimum return of 20%. Catella’s investments will be categorized in two main groups
A) Seed capital investments or co-investments alongside major customers. Our investment is estimated at some 3-5% of the total invested capital in each co-investment. The investments are made with the aim of increasing assets under management and generating income in three ways:
1. return on Catella’s invested capital.
2. attract more external capital that generates fixed earnings, and enables
3. performance-based income when returns exceed a specified level.
The conclusion is that if Catella capitalizes equity through more and smaller investments in proprietary property products, this generates a return on invested capital and adds value through operational income streams.
B) Larger investments in property projects, structures or portfolios alongside partners within the framework of funds or SPVs. The aim is to generate surplus returns based on Catella’s pan-European expertise, and performance-based income in addition to the return on invested capital. The projects are often internally generated, but can also be externally sourced. Catella’s contribution will be to generate high risk-adjusted returns for ourselves and our partners through our unique competences." ays Johan Claesson, acting CEO and President
* Attributable to shareholders of the Parent Company. Includes disposal group held for sale. ** Variable earnings calculated on Systematic Macros’ performance-based management fee. In order for the performance-based management fee to be settled at year end, and recognized for profit/loss, returns must be higher than comparative indices and the most recent level settled (High watermark). *** Adjusted for the product Systematic Equity.
Invitation to presentation of the Interim Report
Catella will be presenting the Interim Report and answering questions in a teleconference today 12 November 2020 at 9 a.m. CET. The presentation will be in English and will be made by Catella’s Interim CEO and President Johan Claesson. To partici-pate in the teleconference, go to www.catella.com or call +46 (0)8 505 583 54.
This is information that Catella AB (publ) 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 07.00 CET on 12 November 2020.
About Catella: Catella is a leading specialist in property investments and advisory and fund management, with operations in 14 countries. The group manages assets of SEK 140 billion. Catella is listed on Nasdaq Stockholm in the Mid Cap segment. Read more at catella.com.