Interim Report January – September 2011
2011-10-20
· Income for the past quarter increased by 12 per cent to SEK 340 million (303), while income for the period January-September totalled SEK 1,012 million (907)
· The operating surplus for the last quarter increased by 16 per cent to SEK 234 million (201), while the operating surplus for the period January-September amounted to SEK 642 million (552)
· Profit from property management for the past quarter totalled SEK 127 million (128), corresponding to SEK 0.79 per share (0.79) and SEK 336 million (337) for the period January-September, corresponding to SEK 2.09 per share (2.09)
· Changes in value of properties amounted to SEK 10 million (106) for the past quarter and changes in value of derivatives to SEK -179 million (-4). Changes in value of properties for the period January-September amounted to SEK 293 million (222) and changes in value of derivatives to SEK -176 million (-120)
· Net profit for the quarter amounted to SEK -32 million (200), corresponding to SEK -0.20 per share (1.25). Net profit for the period January-September amounted to SEK 330 million (344), corresponding to SEK 2.05 per share (2.14).
Statement by the CEO
Clearly positive net moving-in
“The Swedish real estate market has been largely untouched by the turbulence in other countries. Problems with debt in southern Europe and the United States have led to growth prospects being adjusted downwards in these countries as well as in Sweden, this has also led to a sharp fall in long interest rates and brought short interest rates to a halt. Klövern has only seen the effect of the two interest rate changes. The demand for premises continues to be good and the figures for net moving-in for the past quarter are really good. From July to September, moving-in amounted to SEK 33 million, moving-out to SEK 21 million and net moving-in to SEK 12 million. To date this year, net moving-in totals to SEK 14 million. Moving-in is not concentrated to one city or region but can be seen in general in Klövern’s portfolio.
Klövern continues to report very good earnings in the real estate industry. Operating surplus is at a top level at SEK 642 million during the first nine months of the year and profit from property management is touching last year’s level despite net financial income increasing by a hundred million kronor. Thanks to assiduous work in the organization, we have succeeded in compensating for the major part of the decrease that occurred during the first quarter due to the severe winter. Operating margin has amounted to 63 per cent so far this year, which is good bearing in mind that it was only 57 per cent during the first quarter.
Property values remained largely still during the quarter, although they have risen by almost SEK 300 million, corresponding to 2 per cent, to date this year. Falling long market rates have meant that the value of Klövern’s derivatives has decreased by SEK 179 million during the quarter and the value amounts to minus SEK 192 million. Klövern has made use of the opportunity to secure favourable financing by obtaining a fixed interest rate on loans for an additional SEK 1 billion by acquisition of interest rate swaps with a long maturity at a historical low level”, says Gustaf Hermelin, Klövern’s CEO.
Nyköping, 20 October 2011
Klövern AB (publ)
For further information, please contact:
Gustaf Hermelin, CEO, +46 155-44 33 10/+46 70-560 00 00, gustaf.hermelin@klovern.se
Britt-Marie Einar, Finance and IR Manager, Deputy CEO, +46 155-44 33 12/+46 70-224 29 35,
britt-marie.einar@klovern.se
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 September 2011, the value of the properties totaled approximately SEK 14.6 billion and the rental value on an annual basis was around SEK 1.6 billion. The Klövern share is listed on Nasdaq OMX Nordic Exchange in Stockholm Mid Cap.
Klövern AB (publ), Box 1024, SE-611 29 Nyköping, Sweden. Phone +46 155-44 33 00, Fax +46 155-44 33 22. Corporate registration no. 556482-5833. Registered office: Nyköping. kelly.corem.se.
This information is such that Klövern AB (publ) is obliged to publish under the Securities Market Act and/or the Financial Instruments Trading Act. The information was made available for publication on 20 October 2011.