Statement by CEO
Net new letting reaches record high
The first quarter has been characterised by an increase in the number of tenants moving in, which, despite the relatively high number of tenants moving out, contributed to net new letting rising to SEK 12 million. The occupancy ratio rose from 84 to 85 per cent during the same period. Unrealised changes in the value of properties amounted to SEK 294 million, a result of successful letting operations and, to a certain extent, lower required returns on the market.
“The strong economy is generating a high degree of activity in all markets where Klövern has operations. I am pleased to report that we have noted an increased demand for premises from both new and existing customers”, comments Klövern’s CEO, Gustaf Hermelin.
Net profit for the period totalled SEK 300 million (183). This improvement is mainly due to an increase in unrealised changes in value and a considerably larger portfolio of properties. Income amounted to SEK 330 million (182) and operating surplus was SEK 206 million (103). The profit includes realised changes in value from property sales at SEK 0 million (13) and unrealised changes in value of properties at SEK 294 million (112). Net financial income was SEK -69 million (-32), of which changes in value from interest caps and interest swaps accounted for SEK 2 million (4). The deferred tax cost for the period amounted to SEK 117 million (0).
Nyköping 25 April 2007
Klövern AB (publ)
For further information, please contact:
Gustaf Hermelin, CEO, tel +46-155-44 33 10, +46-70-560 00 00, firstname.lastname@example.org
Anders Lundquist, CFO, tel +46-155-44 33 20, +46-70-528 43 33, email@example.com
Britt-Marie Einar, Corporate Communications Officer, tel +46-155-44 33 12, +46-70-224 29 35,
Klövern is a real estate company with a local presence that actively develops commercial properties in large Swedish cities. Today Klövern has geographical units in ten cities: Borås, Karlstad, Kista, Linköping, Norrköping, Nyköping, Täby, Uppsala, Västerås och Örebro. As at 31 March 2007, the value of the properties is approximately SEK 11.1 billion and the rental income on an annual basis is around SEK 1,110 million. The Klövern share is listed on the Stockholm stock exchange, Stockholmsbörsen’s Nordic list for medium-sized companies.
Klövern AB (publ), Box 1024, SE- 611 29 Nyköping; Sweden * Tel +46-(0)155-44 33 00, Fax +46-(0)155-44 33 22.
Company registration no. 556482-5833 * Registered office: Nyköping * Website: kelly.corem.se