Klövern AB (publ): Interim Report January-March 2016
»» Net profit increased by 78 per cent to SEK 712 million (400), corresponding to SEK 0.69 (0.35) per ordinary share.
»» Income increased by 7 per cent to SEK 714 million (669).
»» The operating surplus increased by 11 per cent to SEK 463 million (419).
»» Profit from property management increased by 29 per cent to SEK 293 million (227).
»» Changes in value of properties amounted to SEK 726 million (376).
»» After the divestment of 1 property for SEK 110 million and investments of SEK 357 million, the value of the property portfolio amounted to SEK 36,005 million.
»» The interest coverage ratio increased to 3.0 and the adjusted equity ratio improved to 37.2 per cent.
Statement by the CEO
A very good start to 2016
Klövern’s earnings development was very strong during the first quarter of 2016 with profit from property management increasing by 29 per cent to SEK 293 million. Looking back it can be noted that profit from property management has tripled since the corresponding time period in 2012.
A fascinating development. Considerable changes in value of properties contributed to an even greater increase in profit during the quarter further down in the income statement. Apace with rising property values, we have become increasingly selective in acquisitions and are now also investigating
the possibility of divesting certain properties which are fully developed from Klövern’s perspective. In a choice between acquisitions and projects, we often see greater potential for long-term creation of value in project activities, not only in commercial properties but also in housing.
The strong results of the first quarter meant that the financial strength of the company continues to improve. The adjusted equity ratio amounted to 37.2 per cent at the end of the quarter. We continue to work toward our long-term goal of 40 per cent.
Net moving-in continued to be positive during the first quarter of the year. Tenants moving in included Swedbank in top-quality refurbished premises adjacent to the central station in Uppsala while Willys opened a new large grocery supermarket in one of Klövern’s properties in Vinsta in western Stockholm. The economic occupancy rate at the end of the quarter was 91 per cent. If also signed contracts where the tenant has not moved in are included, this figure would rise to 92 per cent.
For us, it has to date been relatively calm this year as far as transactions are concerned. As well as the acquisition of a project property close to Stockholm Central station, we have complemented our portfolio in Halmstad with a centrally located property where a new office building is being constructed.
In line with our aim of continuing to concentrate the portfolio geographically, we have sold a property in Helsingborg consisting of building rights.
There is a high level of activity in the sphere of projects. During the first quarter, stage 1 was completed of our major project at the central station in Uppsala with premises for the County Administrative Board, Swedbank and IP-Only while the over 19,000 sq.m. which Klövern is developing for the Swedish Transport Agency in Örebro is planned to be completely finished before Midsummer. At the same time, it is expected that construction of a modernistic 8,000 sq.m. hotel/office building in Västerås and creation of a new hotel in Kista will accelerate during the second quarter. In total,
Klövern’s remaning investment volume in projects in process amounts to SEK 1,771 million. These projects are to a great extent covered with really long lease contracts with contract periods of 10-20 years.
During the quarter, we have continued in a structured way to examine, city by city, how Klövern could participate in meeting the increasing demand for housing in Sweden. As at 31 March, we had over 100,000 sq.m., of building rights for housing included in local plans and in a longer perspective, we estimate that there will be room for as many as between 8,000 and 12,000 apartments in our existing property portfolio in among others Stockholm, Uppsala, Västerås, Karlstad and Linköping.
Overall, we are very satisfied with developments during the first quarter of the year and see good prospects for a continued good development in 2016.
Rutger Arnhult, CEO Klövern
For additional information:
Rutger Arnhult, CEO, +46 70-458 24 70, email@example.com
Lars Norrby, IR, +46 76-777 38 00, firstname.lastname@example.org
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 kelly.corem.se.
Klövern AB (publ), Bredgränd 4, 111 30 Stockholm. Phone: +46 8-400 500 50. E-mail: email@example.com.
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 19 April 2016.