STOCKHOLM, Sweden, Feb. 12, 2002 (PRIMEZONE) -- Pandox:
-- Income after tax for the year 2001, excluding nonrecurring
revenue, totaled SEK 182.2 corresponding to earnings
per share of SEK 7.31 (6.90).
-- Cash flow from operating activities increased to SEK 267.2
(228.2), which corresponds to SEK 10.73 (10.18) per share.
-- During the year two hotel properties have been acquired
and two non-strategic hotel properties have been divested.
Total property revenue for 2001 amounted to SEK 575.1 M (497.7). The operating net rose by SEK 69.6 M to SEK 478.4 M (408.8). This increase is mainly attributable to the acquisition of Hotellus and hotel properties acquired in 2000 and 2001 as well as a high level of value adding activities in the hotel property portfolio. For comparable units the increase was 2.0 percent.
The adjusted direct yield for the period was 9.6% (9.6). Net financial expense for the period amounted to SEK -178.1 (-150.7). Corporate group income, after tax, exclusive of nonrecurring revenue, for the period improved by SEK 27.4 M and amounted to SEK 182.2 M (154.8).
During the period, the hotel properties Mr. Chip in Stockholm-Kista and Hotel Hogvakten in Helsingborg have been acquired for a total cost of SEK 142 M and with a direct yield of 9 per cent. The hotel properties Sten Stensson Sten in Eslov and Scandic Karlshamn were divested with a capital gain of SEK 8.6 M. These divestments are part of Pandox' strategy to concentrate on ownership in prioritized towns ands cities. As per December 31, 2001, Pandox owned 46 hotel properties with a total of 8 469 rooms and a book value, including hotel inventory, of SEK 5 036.8 M
"2001 was another excellent year for Pandox with growth in revenue, income and cash flow. Pandox strategy with a chosen market segment, high quality hotel property portfolio has, together with active ownership and active risk management, had the desired effect to limit the risks in the portfolio", said Anders Nissen, CEO, Pandox AB.
Year-end report 2001
Net income for 2001, excluding non-recurring revenue, amounted to SEK 182.2 (154.8) M corresponding to earnings per share of SEK 7.31 (6.90).
Cash flow from current operations rose to SEK 267.2 (228.2) M corresponding to SEK 10.73 (10.18) per share.
During the year two hotel properties were acquired and two non-strategic hotel properties were sold.
The Board of Directors proposed a dividend payment of SEK 4.00 (3.50) per share.
Operations and strategy
Pandox is a pure hotel property company creating increased cash flow and therefore added value for its shareholders through active ownership and specialist expertise. Pandox' strategy is to own one kind of asset -- hotel properties. Its focus is strengthened by a prioritized market segment. Pandox is to own large hotel properties in Stockholm, Gothenburg, Malmo, in Swedish regional and university cities, as well as in capitals and other major cities in northern Europe. The hotel properties should be centrally located in natural and strong locations such as city centers, airports and convention centers. The hotels should be in the upper medium to high price range and focus on the business and leisure segment. The company is cooperating by means of strategic alliances with the most powerful players in the hotel market with well-known brands and developed business methods. Revenues are created by variable lease agreements related to the operators' turnover and income whose growth are stimulated by Pandox' active ownership.
As of December 31, 2001, Pandox owned 46 hotel properties with approximately 8,500 rooms and a total area of 511,000 m(2). The company has been listed on the OM Stockholm Stock Exchange's O list since 1997.
The hotel market in 2001
The hotel business cycle in 2001 shifted from a high growth and peak pattern to pass the peak and is now in various stages of decline and leveling out with certain signs of recovery. After 11 September 2001 all of Pandox' markets in Northern Europe have recorded negative growth.
Among other things, this is attributable to the fact that the current economic downturn is affecting large regional cities and capitals. In Sweden most markets recorded a weak but positive growth in RevPAR (average revenue per available room) in 2001. In spite of the weakening hotel market, the number of rooms sold rose by 1.2 per cent to 15.4 million, corresponding to a reduction in occupancy to 47.4 percent (48.3) due to new capacity. Occupancy in Pandox' prioritized Swedish market segments amounted to 60.7 per cent (62.6) or a reduction of 1.9 per cent. However, the underlying demand has increased by 0.9 percent and the decrease in occupancy is an effect of new capacity.
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