* Income amounted to SEK 604 million (631)
* Profit from property management amounted to SEK 209 million (252),
corresponding to SEK 1.30 per share (1.57)
* Net profit for the period increased to SEK 144 million (111), corresponding
to SEK 0.90 per share (0.69)
* Equity amounted to SEK 4,055 million (4,112), corresponding to SEK 25.2 per
share (25.6)
* Changes in value of properties amounted to SEK 116 million (-189).
Statement by the CEO
Positive net moving-in and rising property values
"The second quarter of the year bears few resemblances with the first. Positive
net moving-in has replaced the net vacation of the first quarter. The trend has
turned and the occupancy rate is rising again. Warm weather has replaced the
winter cold, leading to lower operating costs. Together, all these positive
factors have led to a clear improvement in Klövern's profit in the second
quarter. Though, profit for the whole period is still clearly affected by the
costs during the winter.
During the period April-June, Klövern had a net moving-in of SEK 8 million. The
aggregate annual rent of new tenants totalled SEK 21 million while vacating
tenants had an annual rent of SEK 13 million, indicating an unusually low level
of vacation. By way of comparison, it may be mentioned that moving out during
the first quarter was three times as large. The first six months have been
characterized by the moving-in of a large number of small- and medium-sized
tenants, rather than a few large tenants. As many as 268 new tenants received
their keys during this period. It is also gratifying to be able to report that
the occupancy rate rose by one percentage point to 89 per cent, during the
quarter.
The number of transactions on the property market is increasing and the
financing situation has improved. Klövern has refinanced nearly all of its
credits with a final date during 2010 and financed new construction and
refurbishment of SEK 660 million on behalf of Ericsson in Kista. The required
yield for good properties is falling at all locations, which, together with new
lettings, has led Klövern's property values to rise again. The upswing has been
one per cent to date this year, of which practically the whole increase is from
the second quarter. The property market has revived", says Klövern's CEO Gustaf
Hermelin.
Nyköping, 8 July 2010
Klövern AB (publ)
For further information, please contact:
Gustaf Hermelin, CEO, +46 155-44 33 10, +46 70-560 00 00,
gustaf.hermelin@klovern.se
Britt-Marie Einar, Finance and IR Manager, +46 155-44 33 12, +46 70-224 29 35,
britt-marie.einar@klovern.se
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 June 2010, the value of
the properties totalled approximately SEK 12.1 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.
www.klovern.se.
[HUG#1430104]
