Interim report January-June 2010

2010-07-08

  • Income amounted to SEK 604 million (631)
  • Profit from property management amounted to SEK 209 million (252), corresponding to SEK 1.30 per share (1.57)
  • Net profit for the period increased to SEK 144 million (111), corresponding to SEK 0.90 per share (0.69)
  • Equity amounted to SEK 4,055 million (4,112), corresponding to SEK 25.2 per share (25.6)
  • Changes in value of properties amounted to SEK 116 million (-189).

Statement by the CEO

Positive net moving-in and rising property values

 

“The second quarter of the year bears few resemblances with the first. Positive net moving-in has replaced the net vacation of the first quarter. The trend has turned and the occupancy rate is rising again. Warm weather has replaced the winter cold, leading to lower operating costs. Together, all these positive factors have led to a clear improvement in Klövern’s profit in the second quarter. Though, profit for the whole period is still clearly affected by the costs during the winter.

During the period April-June, Klövern had a net moving-in of SEK 8 million. The aggregate annual rent of new tenants totalled SEK 21 million while vacating tenants had an annual rent of SEK 13 million, indicating an unusually low level of vacation. By way of comparison, it may be mentioned that moving out during the first quarter was three times as large. The first six months have been characterized by the moving-in of a large number of small- and medium-sized tenants, rather than a few large tenants. As many as 268 new tenants received their keys during this period. It is also gratifying to be able to report that the occupancy rate rose by one percentage point to 89 per cent, during the quarter.

 

The number of transactions on the property market is increasing and the financing situation has improved. Klövern has refinanced nearly all of its credits with a final date during 2010 and financed new construction and refurbishment of SEK 660 million on behalf of Ericsson in Kista. The required yield for good properties is falling at all locations, which, together with new lettings, has led Klövern’s property values to rise again. The upswing has been one per cent to date this year, of which practically the whole increase is from the second quarter. The property market has revived”, says Klövern’s CEO Gustaf Hermelin.

Nyköping, 8 July 2010

Klövern AB (publ)

For further information, please contact:
Gustaf Hermelin, CEO, +46 155-44 33 10, +46 70-560 00 00, gustaf.hermelin@staging-wwwklovernse.wp4.triggerfish.cloud
Britt-Marie Einar, Finance and IR Manager, +46 155-44 33 12, +46 70-224 29 35, britt-marie.einar@staging-wwwklovernse.wp4.triggerfish.cloud

 

Klövern is a real estate company committed to working closely with customers to meet their needs of premises and services in Swedish growth regions. Klövern has business units in ten cities: Borås, Karlstad, Kista, Linköping, Norrköping, Nyköping, Täby, Uppsala, Västerås and Örebro. As at 30 June 2010, the value of the properties totalled approximately SEK 12.1 billion and the rental value on an annual basis was SEK 1.4 billion. The Klövern share is listed on Nasdaq OMX Nordic Exchange in Stockholm, medium-sized companies.

 

Klövern AB (publ), Box 1024, SE-611 29 Nyköping, Sweden. Tel +46 155-44 33 00, Fax +46 155-44 33 22.
Corporate registration no. 556482-5833.  Registered office: Nyköping. www.staging-wwwklovernse.wp4.triggerfish.cloud.