Interim Report January – September 2012

2012-10-23

  • Income increased by 41 per cent to SEK 1,423 million (1,012)
  • Operating surplus increased by 46 per cent to SEK 935 million (642)
  • Profit from property management increased by 27 per cent to SEK 426 million (336)
  • Change in value of properties totalled SEK 176 million (293), of derivatives to SEK -133 million (-176) and of financial assets to SEK -2 million (0)
  • Net profit for the period amounted to SEK 378 million (330), corresponding to SEK 1.79 per common share (2.05) and SEK 6,85 per preference share (-)
  • Equity has increased by SEK 1,256 million to SEK 5,996 million (4,740)
  • Klövern has, during the period, acquired a total of 129 properties, of which 124 in the acquisition of Dagon, and divested three properties
  • Klövern has, during the period, acquired about 9,3 million shares in Diös Fastigheter AB (publ), corresponding to 12.4 per cent of the total number registered shares in Diös.

Events after the end of the period

  • Klövern has, in accordance with a decision by an Extraordinary Shareholders Meeting, issued additional preference shares of around SEK 650 million
  • Klövern has issued SEK 650 million in an unsecured bond loan. The bond loan has a framework amount of SEK 2,000 million
  • Klövern has taken possession of six properties totalling SEK 320 million and signed an agreement to acquire another property of SEK 490 million
  • Five properties totalling SEK 300 million has been divested or been signed to sell.

Statement by the CEO
Focus on concentration of the property portfolio
“Growth has continued during the third quarter and the beginning of the fourth quarter with the acquisition of nine new properties totalling SEK 1,450 million. Klövern has also divested some fully developed properties for a good price and has started concentration of the property portfolio from Dagon. During the third quarter and the beginning of the fourth quarter, we have also worked intensively with financing, both in the form of equity and borrowed capital. It is our strong wish to concentrate our property portfolio to expanding cities with good future prospects with a conviction that a concentrated portfolio leads to more efficient management.

The real estate business has developed well. The operating margin rose to 66 per cent during the first nine months of the year compared to 63 per cent the same period in 2011. For comparable portfolio the income increases and the property costs decreases.

We have chosen to strengthen our balance sheet and our key ratios by using our common share and our preference share both when acquiring properties and when acquiring shares in Diös. We have furthermore made a new public issue of SEK 650 million. After the end of the period, we have also issued an unsecured bond loan of SEK 650 million in the first place to replace short-term financing of SEK 400 million, which was raised in connection with the acquisition of Dagon. After the issue of preference shares in October, everything else being unchanged, the reported equity ratio has increased from 25 per cent on 30 September to 28 per cent today.

The value of the swaps has unfortunately continued to develop in a negative direction. Adjusted for the negative value of the swaps and the major part of the deferred tax on the properties, which, in reality, will never be paid, the equity ratio amounts instead to 32 per cent at the end of September.

We will continue to focus on concentration of the property portfolio in the future with a view to improving the efficiency of our administration and releasing capital for investments in our prioritized locations”, says Klövern’s CEO Rutger Arnhult.

The Interim Report is available at Klövern’s website, staging-wwwklovernse.wp4.triggerfish.cloud.

Nyköping, 23 October 2012

Klövern AB (publ)

For further information, please contact:
Rutger Arnhult, CEO, +46 70-458 24 70, rutger.arnhult@staging-wwwklovernse.wp4.triggerfish.cloud
Britt-Marie Nyman, Finance and IR Manager, Deputy CEO, +46 155-44 33 12/+46 70-224 29 35,
britt-marie.nyman@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. As at 30 September 2012, the value of the properties totalled approximately SEK 22.3 billion and the rental income on an annual basis was around SEK 2.4 billion. The Klövern share is listed on NASDAQ OMX Stockholm Mid Cap.

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. Website: www.staging-wwwklovernse.wp4.triggerfish.cloud info@staging-wwwklovernse.wp4.triggerfish.cloud

This information is such that Klövern AB (publ) is obliged to disclose under the Securities Market Act and/or the Financial Instruments Trading Act. The information was made available for publication on 23 October 2012.