Klövern AB (publ) : Year-end report 2013
2014-02-12
Income increased by 14 per cent to SEK 2,220 million (1,948).
The operating surplus increased by 15 per cent to SEK 1,392 million (1,215).
Profit from property management increased by 21 per cent to SEK 636 million (524).
Changes in value of properties amounted to SEK -28 million (-33), of derivatives to SEK 337 million (-175) and of financial assets to SEK 71 million (10).
Net profit for the period amounted to SEK 808 million (339), corresponding to SEK 3.75 (1.24) per common share.
Taking possession of 23 properties for SEK 1,020 million and sale of 12 properties for SEK 387 million.
Acquisition of 29.8 per cent of the real estate company Tribona AB (publ). Tribona is reported as an associated company from 7 June 2013.
The Board of Directors is proposing a dividend of SEK 1.50 (1.50) per common share and a dividend of SEK 10.00 (10.00) per preference share.
At the end of January 2014 Klövern announced that a letter of intent regarding an acquisition of Globen City had been signed.
Statement by the CEO
A good finish to the year
“Klövern can report the highest ever profit from property management in the company’s history for the fourth quarter of the year. This is partly due to acquisitions and a mild winter but is also, maybe to an even greater extent, a result of our focus on consolidation and calm working conditions.
The state of the economy is continuing to slowly improve and a number of indicators point to greater optimism in Sweden. Employment is continuing to increase. Efficient office premises are in demand not least by the services sector. There is also a high level of demand for warehouse/logistics facilities at many of our locations. In order for the Swedish economy and demand for office and logistics facilities to really take off from the present level the problems in the surrounding world must be solved. Things are moving in the right direction in most EU countries and in the United States but it is taking time.
A very weak inflationary pressure in the Swedish economy is affecting Klövern slightly negatively as regards property valuations, although the rate cut to 0.75 per cent that the Riksbank made towards the end of the year will have a positive impact on the company.
The economic occupancy rate continues to be high at over 90 per cent in our business units Gothenburg, Kalmar, Karlskrona, Kista, Karlstad and Örebro. A number of other units are also very close to achieving an occupancy rate of over 90 per cent. With a clear focus on letting, I expect that additional units will exceed this threshold relatively soon, which is very gratifying.
Net letting during the last quarter of the year amounted to SEK 35 million, which we are very satisfied with. A major tenant moving-in was CGI which moved into newly renovated premises in Kista at the beginning of December, further strengthening Kista as an attractive choice for office premises in the Stockholm area. In recent years, Kista has moved on from being in principle wholly focused on the telecom and IT sectors to having a very varied group of companies mainly active in the services sector. With transport links that are in many cases as good as Solna/Sundbyberg, but with somewhat lower rental levels, it is an attractive alternative for many companies in the Stockholm region.
During the quarter, two properties each were acquired in Gothenburg, Uppsala and Örebro and one property each in Halmstad, Kalmar and Västerås. All acquisitions have been made in locations where we have a strong organization. We have also reinforced our position generally by continuing to divest properties in peripheral locations. Towards the end of the year, a contract was entered into with ICA Fastigheter Sverige to construct a logistic facility in Uppsala on Klövern’s own land.
As regards financing, the situation on the bank market continues to be favourable where a number of banks demonstrate willingness to provide Klövern with financing. This is also clear on the bond market where margins are falling, which Klövern made use of towards the end of the year by issuing a further two bond loans within existing frameworks for a total of SEK 165 million.
After the year-end, we also announced that we intend to acquire Globen City, mainly consisting of office premises with a low vacancy rate and retail premises on parts of the ground floor. This will be a very good addition for Klövern and the expanding Söderstaden will further increase the attractiveness of the area.
To sum up, I can thus say that Klövern finished the year with a strong quarter. I can note that 2013 has meant a necessary consolidation and calm conditions for work after 2012, which was a year of intensive transactions”, says Klöverns CEO Rutger Arnhult.
For further information, please contact:
Rutger Arnhult, CEO, +46 70-458 24 70, rutger.arnhult@klovern.se
Lars Norrby, IR, +46 76-777 38 00, lars.norrby@klovern.se
Klövern is a real estate company committed to working closely with customers to offer them efficient premises in Swedish growth regions. As of 31 December 2013, the value of the properties totalled approximately SEK 24.1 billion and the rental income on an annual basis was around SEK 2.6 billion. Klövern is listed on Nasdaq OMX Stockholm Mid Cap. For further information, see kelly.corem.se.
Klövern AB (publ), Box 1024, SE-611 29 Nyköping, Sweden. Phone: +46 155-44 33 00, fax: +46 155-44 33 22,
e-mail: info@klovern.se.
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 12 February 2014.