Klövern: Interim report January – June 2007
Statement by the CEO
Conversion and focus yield strong development of profit
The past quarter has been characterised by three things: continued geographical focus, rising demand for premises and conversion of the property stock to add value. At the beginning of April Klövern divested all of its properties in Eskilstuna and Kalmar with a realised change in value of SEK 122 million. After the divestment ten geographical units remain in markets with large potential and in which Klövern wishes to expand, either through investment or further acquisitions.
“We see continued positive development on the rental side. Existing clients need larger premises and the demand from new tenants is large, which means that the occupancy rate has risen by one percentage unit for the third quarter in a row”, comments Klövern’s CEO, Gustaf Hermelin.
The unrealised change in the value of properties continues to be high, which is partly the result of Klövern’s business model which is based on acquiring properties that can be developed and improved to add value and rented out.
Net profit for the period amounted to SEK 659 million (315). This improvement is mainly due to an increase in unrealised changes in value and a considerably larger property portfolio. The profit include realised changes in value from the divestment of properties for SEK 126 million (23) and unrealised changes in property values totalling SEK 438 million (152). Net financial income was SEK -70 million (-54), of which the change in the value of financial instruments and securities accounted for SEK 70 million (21).
Nyköping 13 July 2007
Klövern AB (publ)
For further information, please contact:
Gustaf Hermelin, CEO, tel +46-155-44 33 10, +46-70-560 00 00, email@example.com
Anders Lundquist, CFO, tel +46-155-44 33 20, +46-70-528 43 33, firstname.lastname@example.org
Britt-Marie Einar, Finance and Information Manager, 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 30 June 2007, the value of the properties was approximately SEK 10.8 billion and the rental income on an annual basis was around SEK 1,060 million. The Klövern share was listed on the Nordic Exchange in Stockholm, 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