· Income amounted to SEK 907 million (939)
· Profit from property management amounted to SEK 337 million (389), corresponding to SEK 2.09 per share (2.42)
· Net profit for the period increased to SEK 344 million (179), corresponding to SEK 2.14 per share (1.12)
· Equity amounted to SEK 4,255 million (4,112), corresponding to SEK 26.5 per share (25.6)
· The changes in value of properties amounted to SEK 222 million (-234)
· After the end of the period, 37 properties have been acquired for SEK 1,055 million.
Statement by the CEO
Swift pace of new letting
“The positive development of the rental and property market noted during the second quarter continued during the third quarter. Net moving-in is once again positive and the occupancy rate is 89 per cent, which is one percentage above the level six months ago. Rental levels are rising somewhat in several of Klövern’s cities.
The state of the credit market continues to improve, which has contributed to an increase in the number of property transactions. After the end of the period, Klövern has carried out its first large acquisition since 2007, a property portfolio of 37 properties, mainly in Linköping, but also in Norrköping and Örebro, for SEK 1,055 million. The property portfolio resembles a number of portfolios previously acquired by Klövern – large vacancies and great potential. To start with, the acquisition will lead to a rise in Klövern’s total vacancy, although with our own local staff with good knowledge of customers and the market, all the prerequisites are in place to achieve the same positive result from this portfolio as that already achieved in, for instance, Kista and Uppsala.
Property values are developing positively. During the third quarter, they rose by SEK 87 million or slightly less than 1 per cent. To date, property values have increased by 2 per cent. The increase in value is due to a weak fall in the required return, although also to improved letting. An increase in the number of enquiries is preparing the way for a good finish to the year.
Nyköping, 21 October 2010
Klövern AB (publ)
For further information, please contact:
Gustaf Hermelin, CEO, +46 155-44 33 10, +46 70-560 00 00, email@example.com
Britt-Marie Einar, Finance and IR Manager, +46 155-44 33 12, +46 70-224 29 35, firstname.lastname@example.org
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 2010, the value of the properties totalled approximately SEK 12.2 billion and the rental value on an annual basis was SEK 1.4 billion. The Klövern share is listed on Nasdaq OMX Nordic Exchange in Stockholm, medium-sized companies.
Klövern AB (publ), Box 1024, SE-611 29 Nyköping, Sweden. Tel +46 155-44 33 00, Fax +46 155-44 33 22.
Corporate registration no. 556482-5833. Registered office: Nyköping. kelly.corem.se.