Klövern AB (publ) : Year-End Report


»» Net profit increased by 73 per cent to SEK 2,008 million (1,164), corresponding to SEK 1.83 (1.02) per ordinary share.

»» Income increased by 8 per cent to SEK 2,718 million (2,521).

»» The operating surplus increased by 7 per cent to SEK 1,766 million (1,643).

»» Profit from property management increased by 32 per cent to SEK 1,043 million (789).

»» Changes in value of properties amounted to SEK 1,252 million (1,207).

»» After taking possession of 19 properties for SEK 2,732 million, sale of 14 properties for SEK 546 million and investments of SEK 1,386 million, the value of the property portfolio amounted to SEK 35,032 million.

»» The Stockholm Region’s share of the property value increased to 49.4 per cent (47.6).

»» The Board of Directors is proposing a dividend of SEK 0.35 (0.30) per ordinary share and a dividend of SEK 20.00 (20.00) per preference share.

Events after the end of the period

Klövern is exploring the possibility of divesting the properties Isafjord 4 and Isafjord 5 in Kista. Isafjord 4 is Klövern’s single most valuable property and consists of more than 70,000 sq.m. of lettable space, primarily office space.

Statement by the CEO

2015 was another strong year for Klövern

Klövern’s profit continued to develop well during the last quarter of 2015 with a 32 per cent increase in profit from property management. While there are some challenges ahead for the Swedish economy, the market conditions for real estate companies are favourable. The economy is in good shape and interest rates are at a historically very low level. Hand in hand with this, the transaction market continues to be strong, as reflected in rising property values, which in its turn means that it is important to be selective when making acquisitions. In the choice between acquisitions and projects,
we often see a greater potential for long-term value creation in projects at many of the locations where Klövern has a leading position.

Moving in of new tenants was strong during the last quarter of the year, including IP-Only which moved into brand new premises in Uppsala. The goal for the full year of a net moving-in of at least 1 per cent of the rental value was achieved by a broad margin. The goal of an economic occupancy rate of 91 per cent was also achieved, primarily due to the inflow of new tenants.

The divestment of the shareholding in the real estate company Tribona strengthened the cash flow by SEK 604 million and led to a positive impact on profit before tax of SEK 147 million. We are satisfied with the value development of the holding in Tribona which, including dividends, has generated a total return of around 20 per cent and regard the divestment as strategically natural for Klövern which is now focusing to an even greater extent on office properties.

Our property portfolio grew by 16 per cent during 2015 to SEK 35 billion through a combination of acquisitions, value-increasing investments and positive changes in value. During the year, we have primarily strengthened Klövern’s position in Stockholm and Gothenburg by acquisition of high-quality properties with a long list of solid well-known tenants such as BMW, Pfizer, Santander, Bristol-Myers Squibb, GlaxoSmithKline, Abbott, AbbVie, Toyota, Det Norske Veritas and Swedbank. In all, Klövern has over 5,000 tenants in a broad spectrum of industries, geographically distributed at a number of growth locations. This mix, in combination with almost every fifth krona of our income deriving from public sector activities, creates stability.

Stable revenue enables us to develop the business through projects. Major ongoing projects include Tele2’s new head office in Kista, Elite Hotel’s new landmark hotel at the central station in Uppsala and the completion of the Swedish Transport Agency’s new premises in Örebro. We are continuing to work intensively in a structured process by looking at how changed local plans can create opportunities for both new offices and housing, sometimes including infill building to create even more attractive urban environments. A good example of a new project of this kind, where construction will soon start, is the construction of an exciting modernist building of approximately 8,000 sq.m. at the central station in Västerås. About half of this property, known as S7, will be occupied up by a hotel for which Nordic Choice Hotels has signed a 15-year lease.

Overall, we are very satisfied with developments during 2015 and see good prospects for Klövern continuing to expand in a balanced way during 2016.

Rutger Arnhult, CEO, Klövern

For additional information:
Rutger Arnhult, CEO, +46 70-458 24 70, rutger.arnhult@staging-wwwklovernse.wp4.triggerfish.cloud
Lars Norrby, IR, +46 76-777 38 00, lars.norrby@staging-wwwklovernse.wp4.triggerfish.cloud

Klövern is a real estate company committed to working closely with customers to offer them efficient premises in Swedish growth regions. Klövern is listed on Nasdaq Stockholm. For further information, see www.staging-wwwklovernse.wp4.triggerfish.cloud.

Klövern AB (publ), Bredgränd 4, 111 30 Stockholm. Phone: +46 8-400 500 50. E-mail: 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 11 February 2016.