Statement by the CEO
Strong development of profit
"We can present a strong result for the first nine months of the year, not least for the third quarter. The occupancy ratio has increased by one percentage point for the fourth consecutive quarter to 87 per cent. This reflects the good performance of our organisation and shows that it is going well for our customers", says Klövern's CEO Gustaf Hermelin.
The increase in value of the property portfolio results from new letting and rising property prices. Property values are increasing, particularly in Kista, due to the improvement in the state of the market and decreasing vacancies.
The acquisition of 43 properties in Karlstad and Västerås strengthens the organisation and the market position at these places and, after sale of nine properties, with transfer of possession in the fourth quarter, 99 per cent of the property portfolio will be concentrated to Klövern's ten priority markets.
"We have now even greater ability to meet customers need for premises and services at these locations, close to the customer and with commitment", says Klövern's CEO Gustaf Hermelin.
Profit
Net profit for the period amounted to SEK 934 million (427). This improvement is mainly due to increased unrealised changes in value and a considerably larger property portfolio. The profit includes realised changes in value from divestment of properties of SEK 126 million (24) and unrealised changes in property values of SEK 735 million (179). Net financial income was SEK -162 million (-97), of which the change in the value of financial instruments and securities accounted for SEK 55 million (19).
Nyköping, 23 October 2007
Klövern AB (publ)
For further information, please contact:
Gustaf Hermelin, CEO, tel +46 155-44 33 10, +46 70-560 00 00, gustaf.hermelin@klovern.se
Caesar Åfors, CFO and vice-CEO , tel +46 155-44 33 02, +46 70-662 48 48, caesar.afors@klovern.se
Britt-Marie Einar, Finance and Information Manager, tel +46 155-44 33 12, +46 70-224 29 35,
britt-marie.einar@klovern.se
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 September 2007, the value of the properties is approximately SEK 12.2 billion and the rental income on an annual basis is around SEK 1,337 million. The Klövern share is listed on the OMX Nordic Exchange in Stockholm for 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.
Company registration no. 556482-5833 * Registered office: Nyköping * Website: www.klovern.se
