Year-end Report January – December 2020

» Income amounted to SEK 3,294 million (3,638). The decline is due to divestment of properties during 2019, including the whole portfolio in Karlstad and all investment properties in Örebro which together accounted for SEK 278 million of income in 2019. For a comparable portfolio, i.e. properties owned for the whole of 2019 and 2020, income was stable and amounted to SEK 3,128 million (3,150).

» The operating surplus amounted to SEK 2,194 million (2,463). For a comparable portfolio, the operating surplus amounted to SEK 2,113 million (2,121).

» Profit from property management amounted to SEK 1,269 million (1,462).

» Profit before tax amounted to SEK 2,467 million (3,431) and net profit, attributable to the parent company’s shareholders, totalled SEK 1,908 million (3,002), corresponding to SEK 1.67 (2.92) per ordinary share.

» The year 2020 was characterized by a continued strong focus on project development. Investments amounted to SEK 2,376 million. Project development, including development of building rights, contributed to increases in value of properties of SEK 513 million (681). In total, changes in value of properties amounted to SEK 1,322 million (2,125).

» After taking possession of 9 properties for SEK 2,613 million and transfer of possession of 5 properties for SEK 387 million, the value of the property portfolio amounted to SEK 57,448 million.

» The interest coverage ratio amounted to 2.5 (2.6), leverage to 50 per cent (50) and the adjusted equity ratio to 43.2 per cent (43.5).

» The net asset value (NRV) per ordinary share amounted to SEK 19.87.

» The Board of Directors proposes to the Annual General Meeting, for the 2020 financial year, a dividend of in total SEK 0.26 (0.26) per ordinary share to be paid in two instalments and a dividend of in total SEK 20.00 (20.00) per preference share to be paid in four instalments.

Statement by the CEO
Good earnings as a conclusion of the year and for me as CEO

Klövern is ending this different, pandemic-affected year with good earnings and a strengthened financial position. After nine years as the company’s CEO, I am leav­ing a company that is very different from when I started in 2012. The property value then totalled SEK 15 billion, the corresponding figure is now SEK 57 billion. During the same period, the average rent/sq.m. has increased by 49 per cent, which reflects the upgrading of the portfolio. It has been a fantastic journey together with all of Klövern’s highly motivated personnel.