Welcome. [applause] Thank you very much. It's fun to stand here again. But I thought before we get into the serious stuff, you can give a little recap of the results.
Yes, because there aren't that many numbers actually in our presentation today, so we'll take them quickly here. We released our report yesterday, and for those who don't know the company, we have properties worth 72 billion. We have a loan-to-value ratio of 48%, a solvency of 43. We have 13,000 apartments and 1,000 commercial customers. In this year's or half-year's result, we have a management result of 630 million. And if you just look at the previous year, you might think that wasn't good for Wallenstam. But then you need to dig a little into the numbers, and we have some non-recurring items, and if you adjust for them, it actually looks very good. But we also have a special scraper that we have as a project, and it's quite large as you know. And we will continue to build it during next year as well. So a summary of the half-year is that we are very satisfied with the half-year.
But I thought I'd actually put some questions to you, Hans, and you'll find it very difficult, and now let's see if we can get this going. Mm, quick with Hans. Eh, and so it's like this: you have to try to choose, and you'll find it very difficult. First then, Gothenburg or Stockholm?
Eh, that's not possible. But we started the journey in this company with my father over 80 years ago, and then we started building houses in Gothenburg and also buying houses in Gothenburg. Then when we were listed in 1984 and got some money, we started buying houses in Stockholm, and now when it comes to housing, we have half in each place, and commercially we have had in CBD Gothenburg, but now we have also bought the skyscraper, so now it's starting to attract me commercially in Stockholm as well, so I can't choose. They are two great cities, a lot of growth in both, now maybe Gothenburg is a bit more of a driver than Stockholm. But it goes back and forth all the time.
Yes, but we often get the question, but only Gothenburg, Stockholm can't grow more if you look outside these?
No, but we have chosen that line: we are in Gothenburg and Stockholm. That's where we feel that's where our expertise is, so we have a lot of projects ahead in housing, and we have a whole commercial market in the inner city of Stockholm that we have barely touched yet. So there are still challenges for us in those two places.
Then comes a perhaps equally difficult answer: housing or commercial?
Yes, it's equally difficult. We are about 50-50 and have always been 50-50 in the company, and it's quite good because we often get comments: 'Aren't you going to split the company, right commercial, right housing?' No, it's a pretty good relay race because when housing isn't so hot, like during COVID, then commercial was, and now maybe commercial isn't as hot, vacancies and so on. Then housing pulls. So no, it's a very good combo. So we'll probably continue with about half and half.
Then if you look at demand, we actually see a good stable demand for both. We have 97% total occupancy rate and housing fully rented, and that's not entirely obvious these days that housing is fully rented and will...
We have a very large queue. We have 325,000 applicants in our housing queue, so we have a large base to satisfy. And if you think about the vacancy in commercial, because people talk a lot about that, we don't have a very high vacancy.
No, we have very low vacancy in commercial.
Then new production or existing?
Eh, yes, it's quite nice because we build new for ourselves. You could say we sleep in this ruckola. Yes, we grow it ourselves. Or grow. Yes. So we have been building since the company started, building rental apartments for our own management, so we try to build as much new as we can, but then take care of the existing ones, so that's not possible to choose either. But the existing ones have had some better legislative proposals now, or some legislative changes. So we have now focused on perhaps finding value in the old stock. There are unused spaces like attics and basements that we can use for other things. It could be new housing or offices or other things. At the same time, we have reorganized with even more focus on new production, where we have created a business area for investments that only deals with new production and deals. And that's really to increase the focus further on new production because the rents are quite high when you move into a newly produced rental apartment, and then the quality has to be extremely good. And the location, we know we have had in attractive residential areas in Gothenburg and Stockholm. So we have the locations, but also a wow factor. So that's what we have focused on now.
No, then I'd rather buy than sell. But we do both. We like to buy houses where we see some potential for value enhancement. That we can add value, like the skyscraper is a perfect example. We bought it when it needed renovation, and we have a fantastic organization that takes care of it in an extremely good way, and then it might come out as a diamond in the end. So that deal is a typical value-enhancement deal. On the other hand, when we have the chance to take a profit when we have enhanced a project and we feel satisfied and happy, then we also sell. So we had a deal flow of 5 billion last year, so we try to do both. And we have also talked a bit about buybacks today, and we take the opportunity to do that when we sell at what we think is the right value, but which maybe the market doesn't think is right now. So we have done a lot of buybacks as well. Yes, we try to do both investments, deals, and buybacks.
That's a pretty easy choice. Here it's bank. Wallenstam is not rated. That's a conscious choice not to be rated. And we like relationships. We like bank. So it's bank in the choice, then we spiced it up a bit with the capital market as well. But it's bank. 90% of our borrowing is in bank.
Substance value or cash flow?
Yes, there I go a bit against the rest of the market today. I say substance value because that's what measures our, so to speak, what we are worth over time. Then we get in all the value enhancements. We don't get in future profits, but we who are to be and operate maybe we have been over 80 years and we will be over 80 years more, so I feel that if we can create substance through the way we work, naturally not entirely okay cash flow, but of course, the lower the risk, the different things, the lower the return, and we are probably in that segment where there is a bit of risk and a bit less return, but very good over time. Then the last one: football or floorball?
Yes, that's my father in the picture when he plays there. But I am sickly interested in sports, so football or we have sponsored floorball and have been a floorball coach a lot, but football is also very close to my heart. Today, maybe when it's the World Cup, you should say football. So but otherwise it's even. Who wins the World Cup? Norway. Norway. [laughter]
That's Albin. No, but thank you very much, Susanna and Hans. Interesting to hear you discuss. I suspect you do that a lot daily as well. As you touched on the NAV target, you differ a bit from the rest here in the congregation. You have sent out a target to reach 80 SEK per NAV by 2030 at the latest. And one way to report the NAV was 63 here most recently. So how does it feel, Hans? Will you deliver on this target?
No, but it's a challenging target, of course. It's quite a lot of millions we need to generate in those years, but I feel that it's within the realm of reason, so we will manage it. I believe that. But it's a challenge, and we need to get the surplus value in our new productions. We need to be able to enhance our properties so they grow in value, and so on. So we will manage it.
Yes. And when you set the target, was it with the thought that you internally would be able to deliver this growth, or do you suspect you need the markets to some extent as well?
Yes, but the largest part is from our own work, so I feel we can manage it with our own work without any changes in direct yields.
Yes. Eh, buybacks, you have been consistently buying back shares over the years. I recall that you even did buybacks when you were above NAV as well. So what do you plan to do with the shares you have in treasury now?
They are for cancellation. Mm. So we started buying back from day one when it became allowed, and we have been buying in different periods all the time. Sometimes more, sometimes less. Now maybe it's a bit more, and when it's above NAV, maybe it's a bit less.
Mm. And you also pay dividends.
Yes. One third of the management result.
