· Net profit for the year increased to SEK 605 million (237),
corresponding to SEK 3.76 per share (1.48)
· Income amounted to SEK 1,243 million (1,254)
· Profit from property management amounted to SEK 439 million (493),
corresponding to SEK 2.73 per share (3.07)
· Changes in value of properties amounted to SEK 298 million (-231)
and changes in value of derivatives to SEK 23 million (34)
· The Board is proposing a dividend of SEK 1.50 per share (1.25),
corresponding to 55
per cent (41) of the profit from property management.
Statement by the CEO
Record-high net moving-in
"A high level of demand for premises, high net moving-in and rising property
values. And as well as this, a strong Swedish economy. That briefly sums up the
world Klövern is operating in at present. Despite cold winters, Klövern is
reporting its second best profit ever from property management for 2010.
Net moving in was record high at the end of 2010. In the last quarter, the
surplus was as much as SEK 12 million and net moving-in for the whole year
totalled SEK 16 million. Demand for premises is good. During 2010, Klövern
succeeded in clinching the year's largest lease transaction in Sweden. Ericsson
is going to rent an additional 36,000 sq.m. in Kista, of which the major part is
newly produced.
Rental income were affected by the negative index during 2010. The effect will
be positive instead in 2011. The high level of demand also provides good
prospects to be able to raise rental levels, in particular for new leases, but
also for renegotiated leases during 2011. Property costs have been clearly
higher than previously due to high costs for ice and snow clearance as well as
high costs for electricity and heating. Klövern continues the work to reduce the
risk on costs as far as possible.
The property market is functioning again and market rents are rising, which are
important reasons for property values increasing again. On 1 October, we took
possession of properties for SEK 1.1 billion in Linköping, Norrköping and
Örebro. The portfolio had a high level of vacancies, 26 per cent, but despite
this, we have succeeded in maintaining the economic occupancy rate for the
company at 89 per cent. In terms of space, vacancy is almost twice as high. We
expect to be able to reduce vacancy in terms of space during 2011 after our
efforts to hone the letting organisation", says Gustaf Hermelin, Klövern's CEO.
Nyköping, 17 February 2011
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
This information is such that Klövern AB (publ) may be obliged to publish under
the Securities Market Act and/or the Financial Instruments Trading Act. The
information was made available for publication at 10 am on 17 February 2011.
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 31 December 2010, the value
of the properties totalled approximately SEK 13.5 billion and the rental income
on an annual basis was around SEK 1.5 billion. The Klövern share is listed on
Nasdaq 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. Corporate registration no. 556482-5833. Registered office:
Nyköping. www.klovern.se
[HUG#1489791]
