Klövern: Interim Report January – June 2006

 

Rental income amounted to SEK 375 million (302)

 

Net profit for the period increased to SEK 315 million (164)

 

Earnings per share increased to SEK 2.61 (1.47)

 

SEK 175 million (79) of the profit consists of changes in value of properties

 

The full-year forecast is maintained: net profit is expected to exceed SEK 250 million excluding changes in the value of properties 

 

 

”The unrealised changes in value have had a strongly positive impact on earnings during the first six months. Klövern is also able to note the sixth quarter in succession with positive net new lettings. Properties acquired during the second quarter in Uppsala, Nyköping and Kalmar all had a lower occupancy rate than Klövern’s previous average, which meant a decline in occupancy rate of three percentage units.  The demand on Klövern’s markets continues to be sound with an increasing rental trend for retail premises in city centre sites.

 

”The first six months have been characterised by successful letting endeavours in all of Klövern’s separate markets. During the second quarter we have also deliberately acquired properties with low occupancy rates, which enables us to offer both existing and new clients a wider selection of high-quality premises for various purposes. Overall we see a major future potential in these acquisitions, which provide considerable enhancement of Klövern’s presence in the market in Nyköping and mean that once again Klövern is able to take the offensive in Uppsala”, says Klövern’s CEO Gustaf Hermelin.

 

Net profit for the period totalled SEK 315 million (164). This improvement is mainly due to a increase in unrealised changes in value and a considerably larger portfolio of properties. The profit includes realised changes in value from property sales at SEK 23 million (10) and unrealised changes in value of properties at SEK 152 million (69). Net financial income was SEK -54 million (-82) of which changes in the value of financial instruments and securities amounted to SEK 21 million (-6).

 

Nyköping 20 juli 2006

 

Klövern AB (publ)

 

Gustaf Hermelin, CEO, tel +46-(0)155-44 33 10, +46-(0)70-560 00 00, gustaf.hermelin@klovern.se

Anders Lundquist, CFO, tel +46-(0)155-44 33 20, +46-(0)70-528 43 33, anders.lundquist@klovern.se

Britt-Marie Einar, Corporate Communications Officer, tel +46-(0)155-44 33 12, +46-(0)70-224 29 35, britt-marie.einar@klovern.se

 

 

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