Klövern AB: Interim Report January-September 2016
(Thomson Reuters ONE) -
»» Income increased by 6 per cent to SEK 2,138 million (2,013).
»» The operating surplus increased by 8 per cent to SEK 1,439 million (1,333).
»» Profit from property management increased by 17 per cent to SEK 918 million
(786).
»» Changes in value of properties amounted to SEK 1,406 million (1,084).
»» Net profit increased by 14 per cent to SEK 1,694 million (1,482),
corresponding to SEK 1.58 (1.35) per ordinary share.
»» After taking possession of 2 properties for SEK 398 million, sale of 8
properties for SEK 365 million and investments of SEK 1,109 million, the value
of the property portfolio amounted to SEK 37,585 million.
»» The interest coverage ratio increased to 3.0 (2.6) and the adjusted equity
ratio improved to 36.9 per cent.
»» After the end of the nine-month period a total of 28 properties have been
acquired in Malmö and Lund for SEK 910 million with transfer of possession on 1
December 2016.
Statement by the CEO
Continued good development of earnings
Klövern's development of earnings continued to be strong during the third
quarter and profit from property management increased by 11 per cent. With
contribution from positive changes in value of properties, profit before tax
increased by 24 per cent. We have for some time held back with major
acquisitions and instead focused on creating value through projects, while at
the same time gradually further reinforcing the balance sheet. Market conditions
continue to be favourable in the form of solid economic development and
historically very low interest rates.
The healthy earnings in the third quarter have led to a further improvement in
the company's financial strength. At the end of September, the adjusted equity
ratio was 36.9 per cent, an improvement of just over one percentage point since
the beginning of the year and on the way toward our longterm goal of 40 per
cent.
Net moving-in, which was positive during the ninemonth period but negative
during the quarter, was affected by a couple of long-announced large vacations
in Kista. These have to a great extent been compensated for by Tele2 in
September moving in to its new head office encompassing around 20,000 sq.m. and
that StayAt has at the same time opened a new apartment hotel of over 7,000
sq.m. in the same area. Looking at future moving in, it may be noted that we
have signed lease contracts during the quarter for a new upper secondary school
of around 4,000 sq.m. in Västerås and with the EU agency European Centre for
Disease Prevention and Control for 9,400 sq.m. in Solna, in both cases with
moving-in planned to take place during 2018. The office premises vacated by
Ericsson in Kista are of high quality and we are now working on further
developing the 40,000 sq.m. under the name of Kista Gate to a top modern multi-
tenant unit to attract a good mix of tenants.
On the transaction side, Klövern has had relatively few large transactions for a
long period. Looking back, it can be noted that, with the exception of the
acquisition of a midsize project building in central Stockholm during the
spring, we have not taken possession of any major acquired property since
November 2015. Although there has continued to be a high level of activity in
the Swedish transaction market, we have not seen many properties for sale that
would fit our portfolio. This is also a question of price. Apace with rising
property values, we have gradually become more selective and instead allocated
more capital to project activities, where we have often seen greater potential
for long-term creation of value. Through the over 350 projects now in process,
with a remaining investment volume of SEK 1.3 billion, we are strengthening
Klövern's position in a number of important cities, including Stockholm,
Uppsala, Gothenburg, Karlstad and Västerås.
We are continuing to concentrate the property portfolio geographically and
during 2016 have signed contracts to sell some smaller properties in, among
other places, Helsingborg and Köping. We can also envisage divesting properties
with a good development of value, which are fully developed from Klövern's point
of view.
In the residential segment, Klövern Living is continuing to work with a number
of projects at different stages. We maintain the assessment that there may be
scope for as many as between 8,000 and 12,000 apartments in our existing
property portfolio, in Stockholm, among other places. The pace and extent of our
future expansion in the residential segment depends partly on the additional
volume of building rights for residential properties that is created in the
future. At the same time, alternative ways of developing the value of building
rights provide great flexibility as regards investment volume and the balance
between risk level and value creation.
Overall, we are very satisfied with the development during the third quarter of
2016 and look forward to favourable conditions for continued healthy development
in the final quarter of the year.
Rutger Arnhult, CEO Klövern
For additional information:
Rutger Arnhult, CEO, +46 70-458 24 70, rutger.arnhult(at)klovern.se
Lars Norrby, IR, +46 76-777 38 00, lars.norrby(at)klovern.se
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 www.klovern.se.
Klövern AB (publ), Bredgränd 4, 111 30 Stockholm. Phone: +46 8-400 500 50. E-
mail: info(at)klovern.se.
This information is information that Klövern AB is obliged to make public
pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The
information was submitted for publication, through the agency of the contact
persons set out above, at 07:30 CET on 20 October 2016.
Interim Report January-September 2016 (pdf):
http://hugin.info/134084/R/2050020/766741.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Klövern AB (publ) via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 20.10.2016 - 07:31 Uhr
Sprache: Deutsch
News-ID 501583
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contact information:
Town:
Nyköping
Kategorie:
Business News
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