Klövern AB (publ)

Interim report January – March 2020

» For a comparable portfolio, i.e. properties owned for the whole of 2019 and 2020, income increased by 4 per cent to SEK 805 million (773) and the operating surplus increased by 8 per cent to SEK 539 million (501).

» Reported income amounted to SEK 837 million (896) while the operating surplus amounted to SEK 558 million (599). The decline is due to net divestment of properties during 2019, among others the whole portfolio in Karlstad and all investment properties in Örebro.

» Profit from property management amounted to SEK 324 million (362).

» Profit before tax amounted to SEK 882 million (847) and net profit, attributable to the parent company’s shareholders, totalled SEK 656 million (632), corresponding to SEK 0.70 (0.67) per ordinary share.

» Changes in value of properties totalled SEK 593 million (544).

» Project development, including development of building rights, contributed to increases in value of properties of SEK 97 million (122).

» After taking possession of 4 properties for SEK 2,201 million, transfer of possession of a part of 1 property for SEK 258 million and investments of SEK 467 million, the value of the property portfolio amounted to SEK 55,811 million.

» The interest coverage ratio amounted to 2.5 (2.6), leverage to 52 per cent (50) and the adjusted equity ratio to 41.4 per cent (43.5).

» The net asset value per ordinary share (NAV) amounted to SEK 22.44 (21.17).

Statement by the CEO

A strong first quarter despite the current situation

Despite a turbulent start to 2020, marked by covid-19, earnings have been strong during the first quarter. This is partly due to a mild winter but also due to a good development in a comparable portfolio. The quarter gives us a safer starting point ahead of the rest of the year. From mid-March onwards the focus has been on parrying the effects of the current corona situation, among others through a longterm constructive dialogue with tenants in particularly affected industries.

STABLE EARNINGS DEVELOPMENT
Klövern is reporting stable and good earnings for the first quarter. Profit from property management amounted to SEK 324 million, and after positive changes in value of properties of SEK 593 million profit before tax increased to SEK 882 million. The return on equity during the past 12 months amounted to 16 per cent.

UNCERTAIN STATE OF THE ECONOMY
Already during 2019, macro statistics indicated a slowdown in the economy. Accordingly, we have during quite some time been able to prepare the company for weaker demand. But the negative macroeconomic development has been rapidly accelerated by the corona situation.